South Korean Government Plans to Re-Legalize ICO

South Korean government plans to re-legalize initial coin offerings (ICOs) through an official recommendation document after imposing a total ban on ICOs in last September, reported local news outlet on May 29.

The National Assembly Committee was formed in order to study the ‘Fourth Industrial Revolution’. The group will focus on establishing “a legal basis for cryptocurrency trading and ICOs”, according to Business Korea.

The Committee expressed,

“We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee.”

“We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order,” it added.

The news outlet also explains that imposing a total ban on ICOs is not a good move economically since the companies who want to launch ICOs goes in different countries with a more permissive and risked regulatory framework.

Business Korean expressed,

“With the government failing to present any guidelines for ICOs, domestic blockchain companies are going to Singapore and Switzerland to do an ICO and pay unnecessary expenses. Investors are also exposed to the risks of crime impersonating ICOs of leading companies”